Charitable Lead Trusts
Protect Your Assets
You can benefit from the tax savings that result from supporting the LBJ Foundation without giving up the assets that you'd like your family to receive someday with a donation in the form of a charitable lead trust.
There are two ways that charitable lead trusts make payments to the LBJ Foundation:
A charitable lead annuity trust pays a fixed amount each year to the LBJ Foundation and is more attractive when interest rates are low.
A charitable lead unitrust pays a variable amount each year based on the value of the assets in the trust. With a unitrust, if the trust's assets go up in value, for example, the payments to the LBJ Foundation go up as well.
- Contact Julie Metzger at 512-721-0262 or email@example.com to talk about supporting the LBJ Foundation by setting up a charitable lead trust.
- Seek the advice of your financial or legal advisor.
- If you include the LBJ Foundation in your plans, please use our legal name and federal tax ID.
Legal Name: The Lyndon Baines Johnson Foundation
Address: 2313 Red River Street, Austin, TX 78705
Federal Tax ID Number: 74-1774063
An Example of How It Works
George would like to support the LBJ Foundation and provide for his children. George received a windfall amount of income and needs a large income tax deduction to offset the income. Following his advisor's recommendation, George funds a grantor charitable lead annuity trust with assets valued at $1,000,000. George's trust pays $70,000 (7 percent of the initial fair market value) to the LBJ Foundation each year for 15 years, which will total $1,050,000. After that, the balance in the trust reverts back to George. He receives an income tax charitable deduction of $873,110. Assuming the trust earns an average 6 percent annual rate of return, George receives approximately $767,240 at the end of the trust term.
George's trust pays $175,000 (7 percent of the initial fair market value) to the LBJ Foundation each year for 15 years, which will total $2,625,000. After that, the balance in the trust goes to his children. Assuming a 6 percent investment return, the children will receive approximately $1,918,101.
*Assuming annual payments and a 2.4 percent charitable midterm federal rate.